OPEC+ to cut oil production by 2 million barrels per day to shore up prices. Oil prices are likely to head for the US$100 mark again, adding more pressure to existing CPI numbers.
It may not be all bad news, tune our focus a little differently, instead of general stocks, commodity markets.
The markets available for retail investor:
1. Invest directly in the commodity- It is likely a no for me because of storage and holding cost
2. Invest in futures contracts- No, it is not for investor, unless I plan to trade them with shorter-term view
3. Invest in commodity stocks- I will consider this option, but no shortcut, still have to do micro analysis homework and to decide the best few stocks to invest
4. Invest in commodity ETFs and mutual funds- Personally, my favourite option compares to all the above
The real danger will be with the continuous rise in interest rates and yet the dollar starts weakening, just like the pound. Not happening now, I am keeping watch on this closely.
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